How important are small business lending and inclusive finance for the Philippine banking sector?

Learn more from Benel Lagua, Development Bank of the Philippines' EVP.

Benel D. Lagua is the Executive Vice President and Chief Development Officer of the Development Bank of the Philippines (DBP). As CDO, he heads the Development Banking Sector of the Bank which ensures DBP’s coverage of its priority thrusts namely: Infrastructure and Logistics, Green Environment, Social and Community Development and MSMEs. 

Lagua will be one of the panelists at the Asian Banking and Finance Retail Banking Forum's Manila leg happening on March 9 at the Shangri-La Makati. 

What are your previous experiences and positions held that contributed to who you are as a banker today?
I was a Former President of Small Business Guarantee and Finance Corporation, an attached agency of the Department of Trade and Industry focused on improving the access to finance of small and medium enterprises in the country.

Prior to this, I was the CEO of the Guarantee Fund for Small and Medium Enterprises. I also served as a member of the Small and Medium Enterprise Development Council, the country’s highest policy ranking body on small business development. I was also a part-time lecturer at the Ateneo de Manila University and De La Salle University.

What are your key business philosophies?
The best business models are those that perform well by doing good. Bankers today need to show to the world that they operate with good hearts and souls, that the negative perceptions of the profession are misplaced.

I am a strong advocate of economic development consistent with the needs of humane society and a healthy environment. In the Philippines, I was one of the first advocates of a risk-based lending framework especially for assessment of small business loans. Banking today must be pursued with a purpose and vision, beyond simple profit.

Can you give us a glimpse of what you will talk about at the Asian Banking and Finance Retail Banking Forum? 
I will make a case for small business lending and for inclusive finance. I believe that helping small businesses grow through the financial system makes good business sense while it serves the community better.

Despite present constraints, we can still serve the needs of small entrepreneurs without sacrificing our viability and sustainability objectives by adopting some best practices in the field. Lending to SMEs requires firm a commitment and focus, especially from top management.